New Goals: 7 Credit Repair Challenges to Tackle

Credit repair is a cyclical process, filled with legal documents and correspondence during the typical 30-day response time. While you’re waiting for results, why not challenge yourself during the same 30 days? Tackle these goals next month to further your credit repair efforts. Additional action could lead to larger rewards.

Challenge #1: Cut spending. “Cut” comes with painful connotations, but there are plenty of gentle ways to overhaul your budget:

Save on food by cooking at home at least five days a week and using the same ingredients for multiple dishes.

Curb entertainment expenses by initiating an at-home movie or game night with your friends, allowing you to have fun without breaking the bank.

Track your savings and strive to collect even more next month. Frugality is fun with the right attitude.

Challenge #2: Save $100. Put those spending cuts to good use. While it may seem difficult to save $100 in a single month, you’ll be surprised how easy it is with a little planning. Funnel funds into savings as soon as possible. Emergency savings are essential.

Challenge #3: Lower your utilization. We’ve covered the basics of credit utilization—a percentage based on the amount you owe vs. your credit limit. A low percentage usually equals better credit.Accomplish this challenge quickly by asking your creditors for a favor. Contact customer service and ask for an immediate limit increase. This action will reduce your ratio without any effort on your part. It’s a win-win.

Challenge #4: De-clutter. Disorganization can infect every area of life. If you are prone to a messy home and a mismanaged schedule, it’s time to make some fundamental changes. Take the time to clean out your closet and de-clutter your schedule. A clean slate will help you make better (and deliberate) financial decisions.

Challenge #5: Learn to invest. Investing is the foundation of short-term decisions and safe retirement. It may seem overwhelming, but there are plenty of free resources available. Learn more about the qualities of a good financial planner and make an appointment today. A professional will help you take the first and necessary steps.

Challenge #6: Identify your weaknesses. We all have our vices. In a financial context, a few slip-ups could cost you more than a few credit score points. Identifying your weaknesses is the best way to prevent future damage. Carelessness breeds chaos—caution breeds calm. It’s time to decide where your temperament lies.

Challenge #7: Prioritize. Credit repair is best achieved with an end goal in mind. What will you do with a better score? Do you want to buy a house? A new car? Qualify for a personal loan? Lower your insurance premiums? The possibilities are plentiful. Set your sights on a reward and work to accomplish it.